Monthly car subscriptions are on the rise in the UK automotive industry. But what are they and how do they work? In this quick and easy guide, we’ll answer all of your burning questions. 

What is a car subscription scheme? 

The likelihood is that you already use a subscription-based service for your entertainment needs. Think Netflix, Prime or the latest UK addition, Britbox. 

Monthly car subscription schemes in the UK are no different. You’ll pay a monthly fee for the car itself, as well as incidental costs like registration, maintenance, roadside assistance, and liability insurance. All you have to do is add fuel.  

What this means is that you have a more flexible way of making use of a car. Much like a lease, you don’t own the vehicle, but will make a monthly payment. This flexibility means that you can usually stop and start the service whenever you like – some providers have a thirty-day initial period – and you can swap out different models as you please.  

Inevitably, your contract length and type will vary depending on the provider. There are often new and used cars available, and the car’s age, value, and the length of your lease will determine your subscription fee.  

How does car subscription work? 

Different car subscription schemes will work in different ways, as you might imagine. Typically, however, you can take out a car subscription in the following steps: 

1. Join up online 

The car subscription industry is digitally led – it was designed to disrupt traditional car sales, after all. Many providers have apps that you can use to start the process, where you’ll need to upload your driving licence and specify the kind of vehicle you’re looking for. There’ll also be a credit check performed at this point. 

2. Secure the service 

Once checks have been performed and your application has been approved, you can pay a deposit and the first month’s payment. You’ll then also sign your electronic documents and decide whether or not you want to collect your car yourself or have it delivered. If you opt for delivery, it will usually be with you within 2 to 3 days of your initial enquiry. 

3. Delivery or collection 

Whether you choose to have the car delivered or collect it yourself, there’ll be someone to chat through the controls with you and check the model over. You’re then free to hit the road. 

Who provides monthly car subscription in the UK? 

There are a number of different car subscription providers in the UK. These include Wagonex, Cocoon Vehicles, Lease Plan, Elmo, Flexigo Cars, Flexed, Drive Car Flex, Cazoo, and Onto. There are also branded services offered by Audi, BMW, Citroen, DW, Jaguar, Land Rover, Mini, Volkswagen, and Volvo.  

As this industry is digitally savvy and disruptive, there are increasing numbers of emerging companies looking to stake their claim. As such, it’s important to invest your time in researching each one, in order to establish which best meets your particular requirements and needs. 

Car subscriptions: the advantages and disadvantages 

Whether or not you deem a car subscription scheme to be worth it depends on your unique circumstances, and whether you can find a provider that matches those. 

There are certainly advantages to these schemes. They’re easy to apply for – typically the process is exclusively online – and are very flexible. Users avoid long-term contracts and can often swap models around to try different vehicles as they want. Subscriptions can typically be cancelled with ease too, and are convenient, as consumers have all of the faff of car ownership managed by the service provider. It also means they don’t have to have the capital to pay upfront costs for a vehicle. 

However, car subscriptions also have disadvantages. The provider will conduct a credit search, for example, which may result in your application being rejected if your score isn’t great. At My Car Credit, we only perform a soft credit check for our car finance initially, and it won’t impact your score.  

Similarly, subscription schemes are expensive. Because you’re paying for the convenience, they’re pricey, and they can be limiting with mileage caps or age restrictions. Insurance can also become complicated – some providers will cover it but won’t necessarily allow you to take the vehicle abroad or allow another driver under the premium. Constantly swapping cars in and out can result in personal hassle and be a pain if you’re reliant on filing paperwork for parking permits. 

Monthly car subscription vs UK finance 

Car subscription schemes aren’t for everyone. Ultimately, it comes down to what works best for you. If you decide on the latter – namely, finance – My Car Credit is on hand to help you find a great deal, whatever your credit score. 

Call our team today on 01246 458 810 or email

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating


  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed


  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs


  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit


  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past


  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan

X monthly repayments of

Typical rate

Loan amount

Total payable




*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!